Tests of Controls

question 2

Multiple Choice

Tests of controls

• A) are the procedures used to test the effectiveness of controls in support of a reduced assessed control risk.
• B) are used to support the ending balances in the balance sheet and income statement accounts.
• C) are performed at the end of the audit.
• D) are designed to detect fraud.

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Definitions:

Decomposing Organisms

Organisms, such as bacteria and fungi, that break down dead or decaying organic matter, recycling nutrients back into the ecosystem.

Subatomic Particles

Components of atoms that include protons, neutrons, and electrons, each playing a specific role in atomic structure and behavior.

Pigment

An organic molecule that can absorb light of certain wavelengths. Reflected light imparts a characteristic color.

Electrons

Subatomic particles with a negative charge, found in all atoms and acting as the primary carrier of electricity in solids.